Surprise! How to use fib correctly. Log fib!In a previous idea I said if it got 50 likes I would post a surprise.
I think they don't want you to know...
Some people might already know this but I know for a fact the vast majority does not.
I hope this does not stop working now that I share it. I have plenty of other strats and if markets evolve and 1 strat stops working I know I'll be the first to evolve so I do not even mind.
Now how to draw the log fib? You simply use "Fib channel" and voila. I think it is supposed to be a fib that gets drawn diagonally, but unlike the regular fib it scales with log. So it can be diverted from its main purpose and used this way.
Some examples:
It looks like the stock market retraces have been more shallow since investors have been telling people to buy & hold.
Didn't stop billionaires from being made.
On something that went up 10 years, +600%, like gold I am not sure which one is best.
On really big moves it has to be the log one obviously. You can only see the top 10% on the linear chart and most of it is too smal because of the exponential rise.
Amazon is a good example.
I am not saying this works 100% of the time & don't go all in.
There are not a whole lot of really large moves so not a huge sample size to work with.
Since crypto has no intrisic value and most importantly is highly manipulated I expect this to keep working perfectly until the crypto cow is entirely milked and there is nothing left in.
Crypto is still at a 150 billion market cap, at under 25 billion they might think it's not worth their time anymore.
Since miners might bail out (I heard they were doing it little by little) and wash trading / ponzi exchanges are going to exit scam, it could only work once more and then suddenly end.
Crypto was nice and all when it was only made up of noobs, but in 2017 the sophisticated crowd joined and they are interested in cold hard cash, not imaginary money they won't ever be able to cash out of and transform into real concrete money (since it has negative sum rate & no value).
I wish I knew about it earlier and had money to spare. But we almost all have to deal with getting so close to making huge returns and just miss it by a hair.
Those that accepted it have been able to move forward, and we can grow (as fast as our mightly lords the regulators that control our lives will allow).
Those that are still in denial and cannot accept they missed their chance to buy early / cash out at the top, are stuck and will get milked to the last drop (until crypto is small enough the whales ignore it & they'll keep coming any time it grows).
As a conclusion; when you look at really big timeframes / or moves of maybe 1000% in a short time, use the log fib ==> This is how you do it on tradingview.
Until next bubble ;)
